4.5 Credit reports and credit scores

In this section:

• 4.5.1 Credit report and credit score quiz
• 4.5.2 Why your credit score is important
• 4.5.3 What's in your credit report?
• 4.5.4 Improve your credit score
• 4.5.5 Summary of key messages

Introduction

When it comes to credit, history does matter. If you own a credit card, take out a car loan, have a mortgage or pay bills, you have a credit history. Lenders use your credit history to decide whether to loan money to you and at what interest rate.

This section covers credit reports and credit scores. In it you will learn:

• how to read and understand a credit report
• how your credit score is determined
• what a high or low credit score means to you
• how to improve your credit score.

By the time you finish this section, you will have a better understanding of why your credit score is important and what you can do to maintain or improve it.